Aetna Inc expects to eliminate approximately 1,250 jobs by the end of March 2010; a response to both the ailing economy and their anticipation for the future of health care reform.
Aetna, the nation’s third-largest insurer, announced Wednesday that 625 jobs would be cut in the coming weeks with another 625 by the close of the first quarter. This accounts for around 3.5 percent of the company’s 35,5000-person workforce.
Outside of layoffs Aetna is attempting to cut costs by merging a number of field offices.
Aetna predicts $40 million in after-tax charge, with $12 million in costs for the initial job cuts and the additional $28 million to unite real estate leases..
Aetna announced plans to cut up to 650,000 members to contend with the rising price of medical treatment. Whether or not Aetna makes the decision to cut members and staff, a period of change is upon Aetna and its competitors alike.
The current consideration being paid to institutionalizing a government-run plan in Congress presents an enormous threat to insurers across the board. WellPoint Inc, a primary rival of Aetna, has also announced the prospect of job cuts; a corollary of anticipated enrollment declines.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on the Internet at www.equitiesmagazine.com, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
